Measuring And Analyzing the Effectiveness of Monetary Policy Tools to Manage the Internal Public Debt Structure in Iraq

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Measuring And Analyzing the Effectiveness of Monetary Policy Tools to Manage the Internal Public Debt Structure in Iraq

Abstract

The research aims to analyze the relationship between monetary policy tools and the structure of domestic debt in Iraq based on the multiple regression model after testing the stability of the series under study using approved tests based on monthly data (2016-2024). The research reached several conclusions confirming a relationship between the variables. Using the standard method, it became clear that the relationship between the independent variable Policy Price (PP), which expresses the policy rate, the cash reserve variable Monetary Reserves (R), and the dependent variable, remittances discounted from the Central Bank (CBC), is an inverse relationship, i.e. if the value of Policy Price (PP) decreases by (1%), the variable Central Bank Discounted Transfers (CBC) increases by (-.0584246) million dinars. If R decreases by 1%, Central Bank Discounted Transfers (CBC) increases by (-.0323548) million dinars, and the relationship is insignificant. The effect of the open market is positive and insignificant, i.e., if the Open Market (OM) increases by (1%), the value of remittances discounted from the Central Bank increases by (.0019696) million dinars. The relationship between the Policy Price (PP) variable and the cash reserve variable Monetary Reserves (R) with the dependent variable domestic debt TID is an inverse relationship, i.e., if the Policy Price (PP) value decreases by (1%), Total Internal Debt (TID) increases by (-.0186893) million dinars. If Monetary Reserves (R) decreased by 1%, Total Internal Debt (TID) increased by (-.0327224) million dinars, and the relationship is not significant. Accordingly, the study recommends implementing appropriate policies for domestic public debt and adhering to rules that include loan terms and usage. This reduces the debt burden while enhancing effectiveness in projects stimulating investment flows.

مجلة المثنى للعلوم الادارية والاقتصادية, 2024,المجلد 14, العدد 4, الصفحات 166-175

DOI:10.52113/6/2024-14-4/166-175

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